Marketing Test 3 Grantham

AIDA model

A common model of the series of mental stages through which consumers move as a result of marketing communications: Awareness leads to Interests, which lead to Desire, which leads to Action.

brand awareness

Measures how many consumers in a market are familiar with the brand and what it stands for; created through repeated exposures of the various brand elements (brand name, logo, symbol, character, packaging, or slogan) in the firm's communications to consumers.

aided recall

Occurs when consumers recognize a name (e.g., of a brand) that has been presented to them.

top-of-mind awareness

a prominent place in people's memories that triggers a response without them having to put any thought into it

lagged effect

a delayed response to a marketing communication campaign

Advertising

a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future

Public Relations (PR)

the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

direct marketing

sales and promotional techniques that deliver promotional materials individually

mobile marketing

marketing through wireless handheld devices

blog (weblog)

a web page that contains periodic posts; corporate blogs are a new form of marketing communications

Social media

Media content used for social interactions such as YouTube, Facebook, and Twitter.

Objective-and-task method

an IMC budgeting method that determines the cost required to undertake specific tasks to accomplish communication objectives; process entails setting objectives, choosing media, and determining costs

rule-of-thumb methods

budgeting methods that base the IMC budget on either the firm's share of the market in relation to competition, a fixed percentage of forecasted sales, or what is left after other operating costs and forecasted sales have been budgeted

Frequency

measure of how often the audience is exposed to a communication within a specified period of time

Reach

Measure of consumers' exposure to marketing communications; the percentage of the target population exposed to a specific marketing communication, such as an advertisement, at least once.

Gross Rating Points (GRPs)

Measure used for various media advertising- print, radio, or television; GRP\=reach*frequency

Web tracking software

used to assess how much time viewers spend on particular web pages and the number of pages they view

social shopping

using the internet to communicate about product preferences with other shoppers

search engine marketing (SEM)

a type of web advertising whereby companies pay for keywords that are used to catch consumers' attention while browsing a search engine

Impressions

the number of times an advertisement appears in front of the user

click-through rate (CTR)

the number of times a user clicks on an online ad divided by the number of impressions

Relevance

in the context of search engine marketing (SEM), it is a metric used to determine how useful an advertisement is to the consumer

return on marketing investment (ROMI)

The amount of profit divided by the value of the investment. In the case of an advertisement, the ROI is (the sales revenue generated by the ad - the ad's cost) / the ad's cost

Advertising

a paid form of communication from an identifiable source, delivered through a communication channel, and designed to persuade the receiver to take some action, now or in the future

advertising plan

a section of the firm's overall marketing plan that explicitly outlines the objectives of the advertising campaign, how the campaign might accomplish those objectives, and how the firm can determine whether the campaign was successful

pull strategy

a strategy in which the goal is to get consumers to pull the product through the marketing channel by demanding it

push strategy

Designed to increase demand by motivating sellers—wholesalers, distributors, or salespeople—to highlight the product, rather than the products of competitors, and thereby push the product onto consumers.

informative advertising

communication used to create and build brand awareness, with the ultimate goal of moving the consumer through the buying cycle to a purchase

Persuasive advertising

communication used to motivate consumers to take action

reminder advertising

communication used to remind consumers of a product or to prompt repurchases, especially for products that have gained market acceptance and are in the maturity stage of their life cycle

product-focused advertisements

used to inform, persuade, or remind consumers about a specific product or service

Institutional advertisement

a type of advertisement that informs, persuades, or reminds consumers about issues related to places, politics, or an industry(e.g., got milk? Ads)

public service advertising

Advertising that focuses on public welfare and generally is sponsored by nonprofit institutions, civic groups, religious organizations, trade associations, or political groups; a form of social marketing.

social marketing

the application of marketing principles to a social issue to bring about attitudinal and behavioral change among the general public or a specific population segment

unique selling proposition (USP)

a strategy of differentiating a product by communicating its unique attributes; often becomes the common theme or slogan in the entire advertising campaign

Information appeal

used in a promotion to help consumers make purchase decisions by offering factual information and strong arguments built around relevant issues that encourage them to evaluate the brand favorably on the basis of the key benefits it provides

emotional appeal

aims to satisfy consumers' emotional desires rather than their utilitarian needs

Media planning

the process of evaluating and selecting the media mix that will deliver a clear, consistent, compelling message to the intended audience

media mix

the combination of the media used and the frequency of advertising in each medium

media buy

the actual purchase of airtime or print pages

mass media

channels that are ideal for reaching large numbers of anonymous audience members; include national newspapers, magazines, radio, and television

niche media

channels that are focused and generally used to reach narrow segments, often with unique demographic characteristics or interests

advertising schedule

the specification of the timing and duration of advertising

continuous advertising schedule

runs steadily throughout the year and therefore is suited to products and services that are consumed continually at relatively steady rates and that require a steady level of persuasive or reminder advertising

flighting advertising schedule

an advertising schedule implemented in spurts, with periods of heavy advertising followed by periods of no advertising

pulsing advertising schedule

combines the continuous and flighting schedules by maintaining a base level of advertising but increasing advertising intensity during certain periods

Headline

in an advertisement, large type designed to draw attention

subhead

an additional smaller headline in an ad that provides a great deal of information through the use of short and simple words

body copy

the main text portion of an ad

brand elements

characteristics that identify the sponsor of a specific ad

Pretesting

assessments performed before an ad campaign is implemented to ensure that the various elements are working in an integrated fashion and doing what they are intended to do

Tracking

includes monitoring key indicators, such as daily or weekly sales volume, while the advertisement is running to shed light on any problems with the message or the medium

posttesting

the evaluation of an IMC campaign's impact after it has been implemented

lift

additional sales caused by advertising

Puffery

the legal exaggeration of praise, stopping just short of deception, lavished on a product

Public Relations (PR)

the organizational function that manages the firm's communications to achieve a variety of objectives, including building and maintaining a positive image, handling or heading off unfavorable stories or events, and maintaining positive relationships with the media

cause-related marketing

commercial activity in which businesses and charities form a partnership to market an image, a product, or a service for their mutual benefit; a type of promotional campaign

event sponsorship

Popular PR tool; occurs when corporations support various activities (financially or otherwise), usually in the cultural or sports and entertainment sectors.

sales promotions

Special incentives or excitement-building programs that encourage the purchase of a product or service, such as coupons, rebates, contests, free samples, and point-of-purchase displays.

Coupon

Provides a stated discount to consumers on the final selling price of a specific item; the retailer handles the discount.

deal

A type of short-term price reduction that can take several forms, such as a "featured price," a price lower than the regular price; a "buy one, get one free" offer; or a certain percentage "more free" offer contained in larger packaging; can involve a special financing arrangement, such as reduced percentage interest rates or extended repayment terms.

Premium

an item offered for free or at a bargain price to reward some type of behavior, such as buying, sampling, or testing

contest

a brand-sponsored competition that requires some form of skill or effort

Sweepstakes

A form of sales promotion that offers prizes based on a chance drawing of entrants' names.

Sampling

offers potential customers the opportunity to try a product or service before they make a buying decision

Loyalty program

specifically designed to retain customers by offering premiums or other incentives to customers who make multiple purchases over time

point-of-purchase (POP) display

a merchandise display located at the point of purchase, such as at the checkout counter in a grocery store

rebate

A consumer discount in which a portion of the purchase price is returned to the buyer in cash; the manufacturer, not the retailer, issues the refund.

product placement

inclusion of a product in nontraditional situations, such as in a scene in a movie or television program

cross-promotion

efforts of two or more firms joining together to reach a specific target market

personal selling

The two-way flow of communication between a buyer and a seller that is designed to influence the buyer's purchase decision.

relationship selling

a sales philosophy and process that emphasizes a commitment to maintaining the relationship over the long term and investing in opportunities that are mutually beneficial to all parties

leads

a list of potential customers

qualify

the process of assessing the potential of sales leads

inbound marketing

Marketing activities that draw the attention of customers through blogs, Twitter, LinkedIn, and other online sources, rather than using more traditional activities that require having to go out to get customers' attention, such as making a sales call.

trade shows

major events attended by buyers who choose to be exposed to products and services offered by potential suppliers in an industry

Cold calls

a method of prospecting in which salespeople telephone or go to see potential customers without appointments

telemarketing

a method of prospecting in which salespeople telephone potential customers

Preapproach

in the personal selling process, occurs prior to meeting the customer for the first time and extends the qualification of leads procedure; in this step, the salesperson conducts additional research and develops plans for meeting with the customer

role playing

a good technique for practicing the sales presentation prior to meeting with a customer; the salesperson acts out a simulated buying situation while a colleague or manager acts as the buyer

closing the sale

obtaining a commitment from the customer to make a purchase

price

the overall sacrifice a consumer is willing to make - money, time, energy - to acquire a specific product or service

profit orientation

a company objective that can be implemented by focusing on target profit pricing, maximizing profits, or target return pricing

target profit pricing

A pricing strategy implemented by firms when they have a particular profit goal as their overriding concern; uses price to stimulate a certain level of sales at a certain profit per unit.

maximizing profits

A profit strategy that relies primarily on economic theory. If a firm can accurately specify a mathematical model that captures all the factors required to explain and predict sales and profits, it should be able to identify the price at which its profits are maximized.

target return pricing

A pricing strategy implemented by firms less concerned with the absolute level of profits and more interested in the rate at which their profits are generated relative to their investments; designed to produce a specific return on investment, usually expressed as a percentage of sales.

Sales Orientation

a company objective based on the belief that increasing sales will help the firm more than will increasing profits

premium pricing

a competitor-based pricing method by which the firm deliberately prices a product above the prices set for competing products to capture those consumers who always shop for the best or for whom price does not matter

competitor orientation

a company objective based on the premise that the firm should measure itself primarily against its competition

competitive parity

a firm's strategy of setting prices that are similar to those of major competitors

Status quo pricing

a competitor-oriented strategy in which a firm changes prices only to meet those of companies

customer orientation

a company objective based on the premise that the firm should measure itself primarily according to whether it meets its customers' needs

demand curve

shows how many units of a product or service consumers will demand during a specific period at different prices

prestige products or services

those that consumers purchase for status rather than functionality

price elasticity of demand

Measures how changes in a price affect the quantity of the product demanded; specifically, the ratio of the percentage change in quantity demanded to the percentage change in price.

elastic

refers to a market for a product or service that is price sensitive; that is, relatively small changes in price will generate fairly large changes in the quantity demanded

Inelastic

Refers to a market for a product or service that is price insensitive; that is, relatively small changes in price will not generate large changes in the quantity demanded.

dynamic pricing

refers to the process of charging different prices for goods or services based on the type of customer, time of the day, week, or even season, and level of demand